Dear Subscribers,

this is to share a short term update.
Overall, the trend line method has proven again to give very good signals. As evident in the chart, once the turquoise channel was broken (at around 12 - 12.3 $), the trend changed to DOWN which could have been used to sell and pocket profits.

Currently, prices sit in between the red lower uptrend line arond 10 $ and the 50 d exponential moving average at 9.58 $. This coiling behavior will likely end soon with a strong movement.

On top of that first short term sell signal that we issued on the weekend, we now also have a daily sell signal - as prices moved below the red uptrend line. Overall, the current correction phase will probably last weeks and new high above 15.4 $ are rather unlikely in the following weeks.

Near term, there are two main options:
1) There can be one more leg down. This decline will probably reach 8.5 $ and possibly the 7.23 $ - 7.58 $ zone.
2) If prices move above 10.6 $, then there could be another upward bounce that could reach into the 12 $ - 12.5 $ zone (this rally will likely top at that level and lead again to declines). Only a rise (very unlikely) above 15.4 $ would reactivate the mid term rally.

Trading ideas (always watch the trendlines to be early with buying and selling):
LONG at 7.23 $ - 7.58 $ with a target of 10 $ - 12.5 $.
LONG at 8.5 $ with a target of 10 $ - 10.6 $.
LONG above 10.6 $ with a with a target of 12 $ - 12.5 $.
SHORT in the 12 - 12.5 $ zone with a target of 7.23 $ - 7.58 $.
SHORT below 8.5 $ with a target of 7.23 - 7.58 $.

Long term, the bitcoin bull market is still intact as long as 7.22 $
holds. If this breaks, we enter another leg of deep bear market with
targets below 1 $.

More in depth analysis will be shared with you in tomorrow's weekly newsletter.

Have a great BITday.